Mortgage Industry News

← Back

Rate cuts boost UK mortgages

Date: Wed, 21 Sep 2005

A decrease in interest rates has encouraged more people to take out mortgages, providing a vital shot in the arm for the UK’s housing market.

Figures from the Royal Institution of Chartered Surveyors (RISC) reveal that housing prices declined in August at their slowest rate in nearly a year.

The rates cut has clearly helped to garner more interest in buying houses, with the RICS announcing that the number of enquiries from would-be buyers rose for the third straight month to reach its highest level in nearly two years.

RICS housing spokesman Jeremy Leaf explained: "August's interest rate cut, together with continued employment rises, at new record levels, have helped improve the demand for housing after a difficult year for the industry."

He added that completed sales are up by 7.5 per cent since February, although he warned that it was too early yet to say that this marked the beginning of a market revival.

Property website Rightmove has also cautiously noted this upturn in the market's fortunes, noting that activity levels for August surpassed expectations in each of the two previous months.

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.